In the fast-paced world of agencies, efficiency is paramount. Agency management systems (AMS) for past couple decades has taken the center stage in Agency business. Almost every agency while transitioning from paper to computers have used it as a crutch to be digital. Agencies have used/abused management systems even for the things that it is not be it sales tool, marketing tool, communication manager, risk manager and many more things but all got done from the so called Agency Management System (AMS) and thus the reliance on it grew over time and over generations. Just like Xerox, Colgate, Coke, Google were synonym of the product, AMS became the synonym in agency business as the system of record.
What is a System of Record?
A system of record (SoR) is the authoritative source of truth for a specific type of data. It acts as a central repository, ensuring consistency and accuracy across the organization. Client information, financial data, and project details are prime examples of elements best housed in an SoR.
Why AMS Isn't Always the SoR
While AMS excels at managing policy lifecycles and sometimes communication, it often lacks the depth and functionality to be the sole SoR. Here's why:
- Limited Data Scope: AMS primarily focuses on policy-specific data like be it for rating, endorsements or renewals and may not be responsible for integrated communications that can create confusion and policy/coverage gaps. It might not have the robust features to handle broader agency information like contracts or policy coverage validations, legal documents, or human resource records.
- System outages: If the AMS experiences a system outage, this could disrupt the agency's ability to service its clients. In some cases, this could lead to errors being made or delays in handling claims, renewals or coverage changes.
- Missed Renewals: The AMS might fail to send out renewal notices on time, causing a client's policy to lapse. If the client experiences a loss during the lapse period, they could claim the agency is negligent for not ensuring continuous coverage.
The true strength of AMS lies in its ability to integrate with other SoRs. Here's how this collaboration benefits agencies:
- Centralized View: Integrations allow data to flow seamlessly between AMS and dedicated SoRs like CRM (client relationship management). This creates a unified view of information, eliminating data silos and inconsistencies.
- Improved Efficiency: Automated data exchange (via APIs) removes the need for manual data entry, saving time and minimizing errors.
The ability of an AMS to integrate with other Systems of Record (SoRs) like CRM is a major benefit for insurance agencies. Here's how a centralized view, achieved through this integration, benefits agencies:
- Consolidated Client Information: With data flowing between the CRM & the AMS, agents have a complete picture of each client's history, policies, and interactions. This allows them to personalize communication, offer targeted recommendations, and provide faster service by eliminating the need to search for information across multiple systems. Imagine an agent being able to see a client's past claims and coverage details while they are discussing a renewal, leading to a more efficient and relevant conversation.
- Streamlined Workflows: Integrations can automate tasks like generating quotes, issuing policies, and sending renewal notices. This frees up agents' time to focus on building relationships with clients, handling complex cases, and providing more personalized service.
- Proactive Engagement: By analyzing data from both the AMS and CRM, agencies can identify potential client needs and proactively reach out with relevant insurance products or services. For example, if a client has recently purchased a new home, the system might automatically suggest a homeowner's policy or flood insurance.
- Reduced Errors: Data duplication and manual data entry are minimized when information flows seamlessly between systems. This reduces the risk of errors that can lead to delays, frustrated clients, and potential E&O claims (as discussed earlier).
- Improved Reporting: Integrated systems can provide agencies with comprehensive reports that combine data from different areas. This allows for better decision-making regarding marketing strategies, resource allocation, and identifying trends in client behavior.
- Cross-Selling and Upselling Opportunities: Having a complete view of a client's insurance needs allows agents to identify opportunities for cross-selling (offering additional policies) and upselling (offering higher coverage limits). This can lead to increased revenue for the agency.
- Improved Client Retention: By providing superior customer service and proactively addressing client needs, agencies can foster stronger relationships and improve client retention rates.
Overall, the ability of an AMS to integrate with CRM, SoRs creates a central hub for all client and policy information. This centralized view empowers agencies to deliver better service, operate more efficiently, and ultimately achieve greater success.
What are your thoughts on the power of integrated SoRs? Share your experiences in the comments below!
(P.S. Huge thanks to the client who sparked this insightful conversation!)
